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For last over two years the import of 1.30 lakh doses of Holstein/Jersey semen of elite bovine animals from a United States based company has been stuck in red tape resulting in the blockade of 50 lacs in Jammu and Kashmir.

Holsteins are a breed of cattle known today as the world’s highest-production dairy animals.

According to the CAG report, “In order to increase the productivity potential of bovines and make the state self-sufficient in milk production the Animal husbandry department had intended to introduce superior germplasm by using semen of elite animals”.

A proposal was also mooted by the Director Animal Husbandry department, Jammu in 2010 for import of 1.30 lakh doses of Holstein/Jersey semen of elite bovine animals from a United States based company in two lots during 2009-10, 2010-11 at a whopping cost of ₹ 2 crores.

Initially, the state government sanctioned a sum of ₹ 50 lakhs for implementation of the pilot project subject to following of all codal procedures.

But before finalizing the import agreement the Director, Animal Husbandry department bypassed State level purchase committee and took up the matter directly with the US based company for supply of semen and for grant of license for its import with the Directorate General of Foreign Trade, Govt of India.

The Director also requested the Government for accord of sanction for purchase of semen from the company and for opening letter of credit.

According to the CAG report, the first road block was created by the Joint director, Planning in April 2011. He observed that approval of the firm and rates was the mandate of the state level purchase committee and that letter of credit was to be opened on the basis of supply order and agreement executed with the approved firm.

In September 2011 the global tendering process for import of semen was initiated by the state level purchase committee. Almost one year later, till August 2012, the same had not been finalised resulting in blocking of funds to the tune of ₹ 50 lakhs.

When this was pointed out during the audit inspection Director, Animal Husbandry Department in December 2011 stated that ₹ 50 lakhs had remained unutilised due to procedural delays like obtaining of import license and other allied formalities.In June 2012 when the matter was referred to the state government for comments the Director once again informed in August 2012 that the meeting of the state level purchase committee could not be convened due to official engagement of both the heads of the department resulting in blockade of ₹ 50 lakhs for over two years.